793.94119/756

The Consul at Nanking (Paxton) to the Secretary of State

No. 168

Sir: I have the honor to enclose, for the information of the Department a copy of a memorandum13 covering several unofficial conversations held by two American missionaries in Nanking14 with certain Japanese officials on the subject of possible terms of settlement of the Sino-Japanese hostilities. Though this office had indirect information from Japanese sources that the talks were proceeding, no report of any details of the subjects covered has been received until recently. Naturally, this office, in accordance with its understanding of general policy, has not only refrained from making any specific comments on the discussions but has also recommended extreme caution to the Americans concerned in pursuing them.

No detailed summary is included in this despatch of the contents of the memorandum, as one, prepared by Mr. Mills himself, forms a part of it.15

Perhaps the most significant point made is that, according to responsible Japanese here, the Japanese Central China Army Command is willing to consent to the withdrawal of troops from this area but believes that the North China command will not agree to withdraw its troops from certain portions of that area for fear of military threats from the Russian Army, Japanese distrust of which does not appear to have been appreciably diminished by the recent agreement between Japan and the Soviet Union. However, it is understood that other sources in contact with the Japanese Military in Peiping have been informed that they would be willing to leave China entirely (south of the Great Wall), if that were the only obstacle to peace.

[Page 243]

It is interesting to note, in this general connection, that a Japanese of considerable standing has recently stated in personal conversation that “Sino-Japanese negotiations for a settlement have been in continuous process ever since the commencement of the hostilities”.

Respectfully yours,

For the Consul General at Shanghai:
J. Hall Paxton
[Enclosure]

Memorandum by the Reverend W. P. Mills, of Nanking

Summary and Comments

The paragraphs that follow give a résumé of the most important points brought out in the interviews reported, together with certain comments related thereto.

1.
There is now evident on the part of the Japanese a real desire for a settlement of the China conflict. To this end they are prepared to make concessions which they would not have made a year ago. However, in the meantime China has come to feel that her own position is stronger than it was, and she is therefore now insisting upon conditions, notably in regard to Manchuria, which she would almost certainly not have insisted upon earlier in the struggle. The Japanese readiness to make concessions is thus offset by China’s increasing firmness, and the prospects of peace are consequently at the moment remote.
2.
There is also evident on the part of the Japanese a desire to improve their relations with America. In this connection it is recognized clearly that a settlement of the Sino-Japanese conflict would at once tend, of itself, to bring about such improvement. However, the Japanese are not as yet prepared to effect a settlement of the Sino-Japanese conflict on any terms than their own, as the price of improving relations with the United States. Thus the basic opposition of views between America and Japan continues, and little can be done to improve relations until the Sino-Japanese conflict is settled.
3.
In this connection, however, it should be noted that, at whatever time it may become possible to consider a Sino-Japanese peace, proposals such as those set forth in the appendix to this memorandum16 seem likely to prove fairly acceptable as a basis of discussion. Recent books and magazine articles, containing similar proposals, tend to support this statement. There seems to be a gradual crystallization of opinion as to the main lines along which a settlement of the Far Eastern [Page 244] situation should lie, a fact which should be helpful when the time comes to make such a settlement.
4.
There is still, in spite of the recent Russo-Japanese pact, a deep suspicion on the part of the Japanese as to Russia’s real attitude. This suspicion is given as the reason for the desire to station troops in North China. In this connection any intention of maintaining economic or political control in North China is denied, though whether this denial is genuine or not is, of course, open to question.
5.
The attitude towards the Nanking regime, as revealed by the interviews, is significant. We are told that Japan is committed to the regime and must support it. At the same time one gets the impression that the Japanese now recognize that they will be obliged, in the end, to deal with Chungking for a settlement of the conflict. This they apparently hope to achieve through Nanking as an intermediary. In this connection it seems to be assumed that Nanking will offer no objection to any terms that satisfy both Chungking and Tokyo, if such can be agreed upon. As to what will happen to the Nanking regime in the event of the conclusion of peace with Chungking, nothing is said clearly. Apparently it is expected that Nanking will somehow be absorbed to a greater or less degree in the new Chinese government that will come into being after the war. Whether this expectation will prove well founded or not, only time can tell.
6.
In one of the interviews it was stated quite positively that Chungking has indicated its readiness to accept some form of “cooperation” against Communism. If true, this is an important fact, and its bearings need to be fully considered. However, there seems to be no ground for Japanese hopes that this alleged readiness for “cooperation” against Communism will lead Chungking to agree to the stationing of any Japanese troops south of the Great Wall. Whatever “cooperation” there might be, will, it can be confidently asserted, have to take some other form than this. Moreover, the fact that the possibility of a “higher policy” was indicated, which would involve complete withdrawal south of the Great Wall, supports this view.
7.
Japanese attitudes towards China proper and towards Manchuria, as brought out in the interviews, need to be clearly distinguished. In regard to the former there is frequent reiteration of the intention to abide by the Konoye declaration,17 and to respect China’s sovereignty. All occupation by Japanese troops of China proper is said to be temporary only. Manchuria, on the other hand, is considered as never having been a part of China proper, and the Japanese regard themselves therefore as entitled to treat Manchuria in a different way from the rest of the country. Moreover, since their control of Manchuria has not been effectively disputed during the last decade, [Page 245] the Japanese now feel their position in that area to be secure. Indeed so strong is this feeling that it comes as a shock to the Japanese to have any one suggest (as is done in the proposals attached to this memorandum) that the Manchurian question is not already “permanently” settled. The fact that there was not the violent objection to this suggestion from the three persons interviewed that one might naturally have expected, is mildly encouraging; but, on the other hand, it cannot be thought for a moment that the Japanese as a whole yet envisage the possibility of their ever having to give up Manchuria. Only a crushing military defeat, or the near collapse of the Empire, would cause them seriously to consider such an eventuality. China, on the contrary, as has been already indicated, is equally determined on the recognition of her political sovereignty in Manchuria. It is thus likely that the most serious problem in the way of a Sino-Japanese peace, when such comes to be considered, will be the status of Manchuria.
8.
The ultimate evacuation of Hainan Island would seem to be required by the Konoye declaration of no territorial aggression, but its temporary occupation is defended on the ground of the present international situation. The status of Hainan and the stationing of troops in North China may well prove to be the acid tests of Japan’s sincerity in her professed intention to respect China’s sovereignty.
9.
The claim was made in one of the interviews that Japanese capitalists even more than the military are blocking a settlement with China at this time. This assertion is denied by some, who regard the claim as purely “face saving” for the military. The writer, however, is inclined to give the statement some credence, especially when one considers how strong Japanese economic interests have become in China during the last four years.
10.
No enthusiasm for the Axis Pact was shown in any of the interviews. In fact there was one outspoken condemnation of it, and that, surprisingly enough, by the military officer taking part in the conversations. On the other hand a desire to avoid conflict with America was manifest, though the danger of war was frankly faced. It was felt that this danger lay chiefly in the gradual deterioration of the situation, a deterioration which would almost certainly occur unless positive measures were taken to prevent such a result. In this connection it was made clear that American entry into the European war, if that should come about, would not necessarily bring Japan and the United States into conflict, though naturally it would increase the chances of their becoming so involved. However, American participation in the European war, if that should occur, plus increasing American aid to China, could easily create a situation where conflict would be inevitable.
11.
It was emphasized in the interviews that Japan’s policy of southward expansion is a peaceful one. This is doubtless true, if the expansion Japan desires can be secured without the use of force. Moreover, since the strengthening of the defenses of Singapore, of the Philippines, and of the Dutch East Indies, Japan’s southward policy is certainly likely to be more cautious than it was before, and in this sense peaceful. However, it is not to be doubted that Japan will, unless checked, expand southward in whatever way she thinks best for her own interests. Hence the maintenance of the defenses of the places above mentioned in the highest state of readiness and efficiency is essential. To write thus is not to accuse the parties interviewed of conscious insincerity. It is merely to be realistic. For nothing in the history of the last ten years has shown that Japan can withstand the temptation to expand by force, if she believes that force will obtain for her what she desires. In this sense Japan’s membership in the Axis is a natural alliance, even though many of her wiser heads decry it.
12.
As was indicated in the last interview reported, the situation between Japan and America at the moment, from the Japanese point of view, can be summarized as follows: both countries are watching each other cautiously, neither being quite sure of its real strength; if either were sure, war between them might come very quickly.

The writer does not believe that America is as opportunistic or as devoid of principle in international relations as this summary suggests. Neither does he believe that all Japanese would approve for their own country such a course as the statement implies—the heartless waging of war for purely national and selfish ends. Nevertheless, the writer does believe that there is enough truth in the statement quoted above to represent accurately the situation in the Orient today so far as Japan is concerned. Peace rests, so far as it depends on those who control Japanese policy, only on the thin edge of the balance as to whether it—peace—pays better than war.

American policy in regard to the Orient today must therefore start from a clear realization of this fact, and all of her efforts, whether in a material or a diplomatic sense, must be directed towards convincing the Japanese that peace will serve their interests better than war. Such efforts will be seconded by the saner section of Japanese public opinion, and thus seconded may suffice to carry the day; but if they are to do so, they must be efforts steadily and unceasingly made.

Thus, on the diplomatic side, no avenue of effecting a settlement of the Sino-Japanese war that seems hopeful, nor any plan that promises even by a little to improve Japanese-American relations, should be left unexplored. At the same time, on the material side, there should be no slackening of our aid to China, but rather a constant increase in the help given. Furthermore, economic pressure against [Page 247] Japan should be steadily extended, in order that her resources, whether for the war against China, or for a possible war against the United States, should be correspondingly curtailed. And finally, it should be made clear to Japan that any effort on her part at further expansion by force would meet with instant opposition from us. Japan must be brought to understand that we mean it when we say, “Thus far, and no further!”

In brief, as the writer sees it, the policy which America should have towards Japan at this time is this. Conciliation where conciliation is possible, but always and everywhere firmness. Vacillation will imperil both our own interests and China’s, as well as those of Britain and Holland. Firmness, plus conciliation, where such can be shown without sacrifice of principle, may carry us through, without an open break with Japan, to the end of the present struggles in Europe and Asia, and give us at that time the opportunity of taking part in the construction of a genuinely new order throughout the world. But such future opportunity will be the fruit only of present firmness.

(Summarized by
W. P. Mills
)
  1. Not printed.
  2. Dr. M. S. Bates and Rev. W. P. Mills.
  3. The enclosure, infra.
  4. Entitled “The Conflict in East Asia”, not printed.
  5. December 22, 1938; Foreign Relations, Japan, 1931–1941, vol. i, p. 482.